Lenexa man, woman indicted for $2.9 million medicare fraud conspiracy

Gavel on sounding block
Gavel on sounding block(Source: Gray News)
Published: Dec. 1, 2022 at 4:29 PM CST
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KANSAS CITY, Mo. (KCTV) - A Lenexa, Kansas, man and woman were indicted by a federal grand jury Tuesday for their roles in a $2.9 million conspiracy to defraud Medicare.

Timothy A. Chin and Lauren M. Sword, the co-owners of Senior Community Care, were charged in a 23-count indictment on Tuesday, Nov. 29. The indictment alleges that the 64-year-old Chin and 36-year-old Sword participated in a conspiracy to pay bribes and receive kickbacks for the referral of Medicare beneficiary information that was used to submit nearly $3 million in claims to Medicare from February 2019 to September 2019.

According to court documents, Medicare actually paid out approximately $861,399 to two laboratories that submitted those claims.

In addition to the conspiracy, Chin and Sword were charged with 22 counts of wire fraud.

The indictment alleges that Chin and Sword marketed genetic tests to Medicare beneficiaries and hired or contracted with marketers, sales representatives and patient recruiters to target Medicare beneficiaries at senior residential communities in hopes of inducing those beneficiaries to agree to genetic testing regardless of medical necessity.

Court documents claim that Chin and Sword were marketers and patient recruiters for MBM Solutions, a Florida compnay involved in marketing genetic tests to Medicare beneficiaries. Chin and Sword allegedly received kickbacks and bribes from MBM in exchange for the referral of beneficiaries for genetic tests and doctors’ orders for those tests.

The two laboratories that Chin and Sword caused to bill Medicare would up billing Medicare for approximately $2,927,706, and Medicare paid them approximately $861,399 for specimens from 163 clients.

The federal indictment contains a forfeiture count, which would require Chin and Sword to forfeit any property to the government that came from the alleged wire fraud, including a money judgment in the amount of $95,348.